“Worst Is Yet to Come:” Americans’ Standard of Living Permanently Changed

via Yahoo! Tech Ticker:

There’s no question the American consumer is hurting in the face of a burst housing bubble, financial market meltdown and rising unemployment.

But “the worst is yet to come,” according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American’s standard of living is undergoing a “permanent change” - and not for the better as a result of:

An $8 trillion negative wealth effect from declining home values.
A $10 trillion negative wealth effect from weakened capital markets.
A $14 trillion consumer debt load amid “exploding unemployment”, leading to “exploding bankruptcies.”

“The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car,” Davidowitz says. “A lot of that is gone.”
. . .

What does it mean? Save, NOT spend your way to financial health.

WATCH THE VIDEO. Mr. Davidowitz closes by saying, “The consumer is much further ahead on this than Nancy Pelosi ‘the giveaway queen’.” We couldn’t agree more.

And Obama is her King.

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